PRS Hits £1B Milestone But Growth Slows to Half 2023 Rate

PRS For Music achieved its £1.15 billion ($1.46 billion USD) revenue target Tuesday, reaching the milestone two years ahead of schedule. But the celebration comes with a sobering reality: growth decelerated to 6.1% in 2024, down sharply from 12.5% in 2023.

The UK collection society paid out £1.02 billion ($1.3 billion USD) to songwriters, composers and publishers—an 8.1% increase from 2023's £943.6 million.

Why it matters:

PRS's deceleration mirrors global industry trends, signalling that the music business's post-pandemic boom is cooling across all revenue streams.

Strategic context: Streaming revenue growth slowed to 3.6% in the US market during 2024, while global recorded music growth fell to 4.8%.
Publishing vulnerability: Publishing revenues traditionally lag behind streaming, making PRS's performance an early indicator of broader monetization challenges.
Market saturation risk: With 100 million paid US subscriptions approaching the 133.8 million household ceiling, growth models face structural limits.

By the numbers:

The financial picture reveals both achievement and concern across key metrics:

£1.15B total revenue (up 6.1% vs 12.5% in 2023)
£401.2M online royalties (up 9%, but still below streaming's market dominance)
£351.4M international revenue (79.6% growth since 2015, showing long-term expansion)
Public performance royalties up 14% (driven by 30% live sector recovery)

Between the lines:

CEO Andrea Czapary Martin's messaging reveals strategic pivoting underway. Her emphasis on challenging norms and constant evolution suggests PRS recognises the growth slowdown isn't temporary.

The organisation doubled royalty payouts over the past decade, but faces diminishing returns as streaming matures. Video games partnerships with Sony PlayStation and renewed SVOD deals indicate diversification efforts beyond traditional streaming.

Industry pattern recognition

PRS's deceleration matches broader market signals: Goldman Sachs cut recorded music growth forecasts from 8.8% to 5.8% for 2025, while MIDiA Research noted streaming's first-ever revenue share decline.

What's next:

Industry executives should prepare for sustained lower growth across all revenue streams. Collection societies like PRS will likely accelerate technology investments and international expansion to offset domestic market maturation.

Watch for increased M&A activity as companies seek scale advantages in a slower-growth environment. PRS's efficiency gains—maintaining a sub-10% cost ratio while achieving record distributions—offer a blueprint for operational excellence.

The bottom line:

PRS's milestone masks a fundamental shift: the music industry's explosive growth phase is ending. Companies that adapt to single-digit growth, prioritise operational efficiency, and diversify revenue streams will thrive.

Labels and publishers should adjust 2025 forecasts downward and invest in emerging markets, superfan monetisation, and alternative revenue streams rather than betting on continued streaming expansion.